The practice is known as "fire-and-rehire".
Labour MP Barry Gardiner has put forward a bill that says fire-and-rehire should not be allowed unless employees are properly consulted first. Gardiner's private member's bill said employees should be fully consulted on any fire-and-rehire plans. If the employees agreed to it, they could be taken on under new terms, under the proposed new law. But if a dispute occurred between staff and a company, an independent committee would decide on whether the fire-and-rehire could go ahead, the bill said.